Local steel pledge for East-West Link welcomed

The ASI congratulates the Victorian Government on its commitment to use more than 90 percent local content on the East-West Link project. “We especially welcome its commitment to use 98 percent local steel which is a real shot in the arm for the local industry,” said ASI Chief Executive, Don McDonald. He said that the commitment to local content makes a lot of sense, both financially and politically. Surveys show that for every $1 million of new or retained manufacturing, $713,000 worth of gross value is added in terms of industrial support activity generating six full-time equivalent jobs, saving $64,900 in welfare expenditure and giving governments $225,300 in extra tax revenue. “There are also the non-financial gains in job training through up-skilling, new apprenticeships for our young people and the social capital generated with people in meaningful work,” he said. “These flow-on benefits mean that it clearly makes all the sense in the world to commit to local content, especially when taxpayer dollars are involved. “We encourage both major parties in Victoria to look closely at ways they can enhance the Victorian Industry Participation Policy to ensure that positive outcomes like these are repeated in the remaining $27 billion infrastructure program announced in the May Budget. “The steel industry looks forward to working with the Victorian Government in the coming years to ensure the best outcomes for Victoria and the local steel industry in subsequent projects.”